President Trump Weakens ACA — Strengthens Freedom

The Trump administration has two exciting new announcements on health care. The first skirts the Obama administration’s stringent control on state health insurance agencies. States will be able to request waivers that will allow them to offer health insurance policies that don’t fully comply with the ACA. This will enable more freedom, affordability, innovation and flexibility. 

The second announcement is a proposed regulation to allow employers to provide employees with up to $1800 for the purchase of the employee’s choice of an individual policy. It would let employers escape the health insurance business and let employers choose any policy they wish, rather than being limited to a single employer’s choice of a health plan. Check out the following:

• Fact sheet: https://www.dol.gov/sites/dolgov/files/OPA/factsheets/wh-hra-factsheet.pdf
• Press release: https://www.dol.gov/newsroom/releases/ebsa/ebsa20181023
• WSJ op-ed: https://www.wsj.com/articles/new-health-options-for-small-business-employees-1540249941
• The proposed regulation: https://www.federalregister.gov/documents/2018/10/29/2018-23183/health-reimbursement-arrangements-and-other-account-based-group-health-plans

Here’s an important caveat: the choices are still limited to health plans. President Trump (and state legislatures) should focus on restoring catastrophic indemnity (true) health insurance, the kind of insurance that has no networks, doesn’t interfere in medical choices, doesn’t attempt to control physicians, doesn’t track patients and doctors, and only protects individuals against catastrophic medical events and financial disaster.